In just three years, Zepto has become the poster child of India’s burgeoning quick commerce industry. The startup’s staggering $1.3 billion fundraising spree in 2024, accounting for 10% of all funding raised in the year, has solidified its position as a force to be reckoned with. Not only did Zepto outpace established players like Swiggy Instamart and Zomato’s Blinkit in revenue, but it also achieved more than both combined—a feat that has everyone eyeing its next moves.
The IPO Buzz: Zepto’s Path to Market Debut
Zepto’s strong financial performance in 2024 has fueled speculation about its plans for an initial public offering (IPO) by the end of 2025. If successful, Zepto will become the first Indian startup to list publicly within just four years of inception—a record previously held by Ola Electric, which went public in six years.
The company, founded by Kaivalya Vohra and Aadit Palicha, has reportedly begun IPO groundwork, including discussions with bankers. Its potential listing could set a new benchmark for startups aiming for rapid growth and public debut.
A Year of Aggressive Expansion
Zepto began 2024 with a clear strategy: scale operations, improve unit economics, and raise capital to fuel growth. The startup raised $665 million in Series F funding in June, doubling its valuation from $1.5 billion to $3.6 billion. This funding round introduced several high-profile investors, including Anu Hariharan’s Avra, which made its first India investment through Zepto.
By the end of 2024, Zepto expanded from 7 cities to over 35, doubled its dark store count, and tripled its employee base. These aggressive moves have positioned the startup to compete head-to-head with Blinkit and Instamart while making inroads into Tier II cities like Rajkot, Jaipur, Chandigarh, and Ahmedabad.
Improving Unit Economics
Zepto’s commitment to improving unit economics was a cornerstone of its 2024 strategy. The startup achieved a negative ₹0.5 contribution margin per order by April, a significant improvement from negative ₹8 per order at the end of 2023. This progress boosted investor confidence and accelerated funding rounds, helping Zepto scale its operations.
Zepto Café: A New Vertical
2024 also marked Zepto’s foray into new business lines. The company officially launched Zepto Café as a separate app, following a pilot in 2022. Zepto Café aims to disrupt the coffee and snacks delivery market, with plans to open 100 new cafes per month across six major cities, including Mumbai, Delhi, Bengaluru, Hyderabad, Chennai, and Pune.
The vertical has already completed 30,000 orders, signaling strong initial traction. Zepto has committed to investing heavily in Zepto Café, with dedicated hiring and resources to scale the business.
Challenges and Competition in Quick Commerce
Despite its successes, Zepto faces stiff competition from Blinkit, Instamart, and emerging players like Flipkart, Amazon, and BigBasket. Together, Blinkit, Instamart, and Zepto control nearly 100% of the quick commerce market, but the growing total addressable market—estimated at $45 billion—is attracting new entrants.
What’s Next for Zepto in 2025?
With Blinkit holding a 46% market share, followed by Zepto at 29%, and Instamart at 24%, the battle for dominance in quick commerce is far from over. Zepto plans to re-enter the medicine delivery segment in 2025, despite regulatory hurdles, signaling its ambition to diversify its offerings further.
The company’s billion-dollar war chest will likely fuel further geographic expansion, the establishment of more dark stores, and strategic innovations to stay ahead in the market.
Zepto’s Vision for the Future
As Zepto gears up for 2025, the startup embodies the spirit of “disciplined aggression.” Its focus on scalability, innovation, and financial sustainability has set it apart as a leader in India’s quick commerce landscape.
From setting new benchmarks in funding to venturing into unexplored verticals, Zepto’s journey is a testament to how bold strategies and efficient execution can transform a startup into a market leader in record time.